Many Approved Buyers May no longer qualify for a loan. Here today, gone tomorrow……………
Great Blog, this is not a market I go after, but an associate in my office is going through this process now.
I have already had buyers who qualified 6-8 months ago and now are considering buying this spring BUT….. are finding they may no longer qualify for a loan. Many Lenders need to review the file again before providing the approval letter. I have also had my mortgage lenders visit with under writing before issuing the approval letter. Buyers are not understanding this process so we need to educate them about the past and future changes and the impact on their ability to purchase a home.
I was told by one of the top mortgage lenders in my area that they as well as the under writers are having a tough time understanding all the changes, which means a buyer has the potential of being denied the loan just before closing.
Major changes to ensure FHA’s long-term financial soundness are coming soon
Some examples are as follows:
1) Increase the down payment required from 3.5% to 5%
2) Raise the upfront premium from 1.75% to as much as 3%
3) Eliminate the ability to roll in to loan that up front premium
4) Increase monthly MIP (mortgage insurance premium) from .55%
5) Reduce seller concessions from 6% to 3%
6) Raise minimum FICO score
7) Possible LTV (loan to value) maximums by FICO score
8) Increase accountability of FHA Lenders for fraud
The changes could be implemented within a couple months. This will make it tougher and more expensive for borrowers to obtain FHA loans and therefore reduce the number of eligible borrowers.
NP Dodge
Nationally Recognized as a Top Realtor in North America
Top 3 % of all Area Agents for 2008
Team Atkinson
Buyers Agent: Sarah Shaw
Cell: 250-1449 E-Mail: sshaw@npdodge.com
Billie Atkinson, GRI, BA
Cell: 212-3373
Office: (402) 333-5008
Fax: (402) 333-1914
16909 Lakeside Hills Plaza, Ste. 119
Omaha, NE 68130
WEB SITE: www.topomaharealestate.com
Comments(2)